Thai refiners to upgrade to meet Euro IV

Thailand’s refiners plan to spend around US$1.09 billion to upgrade their plants to produce Euro IV-compliant fuels by 2012, when the new specifications are scheduled to take effect, according to a Platts survey of five of the country’s six refiners. Currently, the gasoline sold in Thailand fall between Euro II and Euro III standards. Diesel fuel sulfur content is capped at 350 parts per million (ppm), in line with Euro III standards, but in gasoline sulfur is aligned with Euro II levels of 500 ppm maximum. The maximum benzene content in gasoline at 3.5% falls between Euro II and Euro III levels. Under Euro IV, sulfur content in diesel fuel and gasoline will be capped at 50 ppm while the maximum benzene content in gasoline will be lowered to 1%. Thailand was originally scheduled to move to Euro IV standards by 2010, but delayed the implementation due to rising crude oil prices. Euro IV-compliant products are manufactured at higher costs; thus retail prices for these products are expected to be higher as well. (March 15, 2007)